Student Name:Arsalan ahmed khan Reg.

ID:024-18-110489
Program: MBA Instructor: Mr. Babar Kamal
Subject: Procurement & Sourcing

Qno 1
These are the different types of buyer-supplier relationships
1.buy on the market:
This is very common approach that buy on the market in which organization buy in response to
immediate need in this we are free to choosing from all the vendor that meet those needs
2.Ongoing relationship
This type of relationship is long term with traditional supplier involve in repeated transaction that
regulate through medium term.
3.Partnership:
A supplier partnership is the establishment of working relationship with a supplier organization
4.Collaboration / Strategic alliance:
This type of relationship is seen as a long term arrangement that is valued more by agreements
than by contracts. The suppliers are fully aware of purchases goal and strategies.
The sourcing strategy for gaining maximum benefit is partnership in this scinerio we get more
benfit and both parties are in win win situation

Qno2
These step we follow for procurement for mnc
1. Identify need requirements: this is first step of procurement in which we identify the need and
issue purchase requisition.
2. Establish specifications: in this step we establish the specification and engineering drawings,
samples requisition detail
3. Identify suppliers: in this step evaluate the supplier and request for quotation and input from
technical staff
4. Price and terms: in this step we negotiation in terms of specification, price, quantity to be
ordered, delivery period, delivery place and payment term.
5. Issue purchase order: a purchase order is a contract in which we ensure that the terms and
conditions are in writing.
6. Follow up and expedite: follow up with supplier that meet the dates and time of delivery and
ensure that work complete on time
7. Receive and verify: after receiving supplies confirm receipt of goods ensure proper physical
condition, quantity and documentation
8. Process payment: for process of payment need of requisition, purchase order, receiving,
invoice and payment
9. Maintain records: maintain all the record of procurement for future

Qno3
demand forecast of raw material is a function that predict the demand of raw material for demand
forecasting we normally use two method for forecasting demand of raw material
Qualitative techniques are the ones which apply knowledge of the business, market, product and
customer to make a judgment call on the forecast. There are many qualitative techniques used in
forecasting. These techniques are primarily based on opinion, like the Delphi Method, Market
Research, Panel consensus etc
Quantitative forecasting techniques: An approach to forecasting where historical demand data is
used to project future demand. It can be divided into two types
Intrinsic Method: This method is based on internal factor such as average of past sales
Extrinsic Method: The forecast method based on correlated leading indicators. This technique is
called a causal technique because it analyzes data on condition thought to result in changes in
demand for a particular item, such as forecast of diaper demand based on birth rate.
By using this method we forcast the demaned of raw material

Qno4
In the supply chain environment, negotiating often involves the cost of an item, arrival time, and
quality standards. When everyone works to leave the bargaining table happy, the affected parties
have more positive attitudes and contractual obligations are more likely to be followed. When
negotiating with suppliers, more is at stake than just price. Knowing the other variables in a deal
and prioritizing them makes negotiating easier.
We follow these step for negotiation

 Develop the specific outcomes desired from the negotiation

 Gather pertinent data

 Determine the facts of the situation

 Determine the issues

 Analyze the positions of strength for both parties

 Set the buyer’s position on each issue, and estimate the seller’s position on each issue based
on your research

 Plan the negotiation strategy

 Brief all persons on the negotiation team

 Conduct a dress rehearsal

 Conduct the actual negotiations with an impersonal calmness

If it is not possible for your firm to be flexible in one area, compromise in another detail may
improve the tone and outcome of the negotiation process. The ideal negotiation results in a
win-win situation for both parties. To accomplish this, both parties need to enter discussions
with a clear goal.

Qno 5
As a warehouse incharge we have to apply to basic consideration to increase the overall value of
the supply chain as a warehouse incharge you should select a number of warehouse for reduce the
logistics cost as you add warehouse to the system some cost well tend to increase such as the cost
of carrying more inventory each safety will keep safety stock. If you have increase the number of
warehouse so your service level also increase because it save your time and cost. Warehouse
location is also very important because if you have far from your buyer so its take more time and
cost are high so when you chose location of warehouse that is near to buyer and easy to approach
for cargo
For determining the right number of warehouse you should consider customer service
transportation cost inventory and setup and overhead cost
For determine the right location you should consider available service neighborhood cost
community inducement and regulatory concern
Qno6
 To run the 16700 outlet each have the fixed cost, which has to be cover even if there is no
sale , if deliveries are not arrive on time at outdate it has fever sales and fixed cost is to be
incurred so cost per unit arises.
 As outsourcing has more cost it has to be in-house and outsource decision has to take after
doing proper cost benefit analysis
 Company should outsource the supply of material as it may be less costly and there is no
need to maintain vehicles and cost is reduced.
Simplified the supply chain structure as if its more complex it has more cost.